Leopold Aschenbrenner’s AI-focused hedge fund Situational Awareness faced intense pressure in late July 2026 after steep losses in leveraged positions across AI infrastructure stocks and semiconductors triggered a sharp drop in assets under management from peaks near $45 billion to roughly $8–10 billion. The firm actively sought fresh capital from existing backers like Jane Street and tech investors, issuing an investor letter that highlighted buying opportunities and opened a window for new commitments starting August 1, yet ultimately sold the bulk of its public equity book to Citadel in a distressed transaction rather than completing a broad raise. It has since deployed $400 million into chip-manufacturing startup Source Foundry while retaining private stakes such as its Anthropic holding, though an ongoing SEC probe into its prime-broker relationships introduces additional uncertainty around future fundraising timelines and regulatory hurdles.